Get Your Credit Repaired With These Tips
Posted at by CreditWiz on category CreditBad credit can affect your self-esteem in a negative way. Your bad credit might remind you of your past, and the poor decisions or circumstances that led you to where you are today. The good news is there are many ways to improve your credit. Get started today with these tips.
An imperfect credit rating can make financing a home even more difficult than normal. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. Anyone can get one, but you must load money onto the card as a type of “collateral”. A new credit card, used responsibly, will help repair your credit rating.
A respectable credit score makes it much easier for you to purchase a home with a mortgage. Making regular mortgage payments will also help your credit score. Owning your own home also improves your credit score in the form of having large assets to borrow against. Having a home also makes you a safer credit risk when you are applying for loans.
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. Your initial agreement likely included a commitment to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Legitimate negative credit problems can not be easily wiped away from your credit rating, so be wary of companies that promise they can do so. You have to wait for seven years before negative data can come off your record. You can, however, succeed at having incorrect information erased from your credit reports.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. This will enable you to make sure to keep your credit in good standing and repair any damage that may have been caused. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
Ask credit companies to lower all of your card limits. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
When you do not have good credit, you will not feel so good about your financial status and you might think it could never improve. Following these credit repair tips can inspire you to think differently and to take charge of improving your credit.